Go-Go Fund

AAA

DEFINITION of 'Go-Go Fund'

A slang name for a mutual fund that has an investment strategy that focuses on high-risk securities in an attempt to capture above average returns. A go-go fund's aggressive approach usually involves holding large positions in growth stocks.

INVESTOPEDIA EXPLAINS 'Go-Go Fund'

Go-go funds entice investors by promising large, abnormal returns created from shifting portfolio weights around speculative information. While investors may experience superior profits, they are also bearing a great deal of risk. These types of mutual funds were highly valued in the 1960s, but became less popular after large downturns in their speculative holdings.

RELATED TERMS
  1. Growth Fund

    A diversified portfolio of stocks that has capital appreciation ...
  2. Growth Stock

    Shares in a company whose earnings are expected to grow at an ...
  3. Underweight

    1. A situation where a portfolio does not hold a sufficient amount ...
  4. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  5. Overweight

    1. A situation where a portfolio holds an excess amount of a ...
  6. Speculation

    The act of trading in an asset, or conducting a financial transaction, ...
Related Articles
  1. Mutual Funds: Does Size Really Matter?
    Mutual Funds & ETFs

    Mutual Funds: Does Size Really Matter?

  2. How To Pick A Good Mutual Fund
    Mutual Funds & ETFs

    How To Pick A Good Mutual Fund

  3. 5 Ways To Measure Mutual Fund Risk
    Mutual Funds & ETFs

    5 Ways To Measure Mutual Fund Risk

  4. The Advantages Of Mutual Funds
    Mutual Funds & ETFs

    The Advantages Of Mutual Funds

comments powered by Disqus
Hot Definitions
  1. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  2. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  3. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  4. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  5. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
  6. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
Trading Center